Bill Watts has decided to buy a sub shop franchise called Super Subs. He lives in Cedar Falls, IA, and will be the first Super Subs franchisee in the state. Along with buying a Super Subs franchise, Bill would also like to purchase the rights to offer and sell Super Subs franchises to other people in the Cedar Falls area.

What type of franchise agreement should Bill negotiate with Super Subs? For Bill, what are the advantages and disadvantages of this type of arrangement?